Trading Summary (September 11, 2001)

The Toronto Stock Exchange‘s 300 composite Index fell 295.9 points, or more than 4%, before trading was halted on Tuesday morning following the tragic events in Washington and New York. The Conglomerate sector led the way, dropping 1,285.76, or nearly 10%. U.S. markets remained closed. The outlook for American markets is grim when trading resumes.

Investors turned to gold, traditionally a safe haven in troubled times, and sent the Gold and Precious Minerals subindex soaring 7% on strength of Kinross Gold, up 20 to $1.55 and Placer Dome, which reached a new 52-week high of $19.20 and eventually slipped to $18.60, up $1.24. Barrick Gold gained $2.50 to $27.70. Other issues reaching new 52-week highs were: Goldcorp, up 95 at $18.75; Glamis Gold, 42 higher at $5.40; and Agnico Eagle Mines, which gained $1.12 to $16.65.

The yellow metal itself leapt US$13.50 to end the day at US$285 per oz. Platinum, palladium, and silver posted more modest gains. The base metals were slightly higher across the board in Europe.

The base metal issues were among the TSE’s 12 declining subindices. Nickel miner Inco shed 75 to hit $24.05 after Goldman Sachs cut the company to market perform from market outperform. The remaining base metal miners performed similarly.

Canada’s junior exchange also plunged before trading was halted on news of the attacks. The Canadian Venture Exchange slumped 41.84 points, or 1.4%, to finish the day at 2,938.61. The Mining Index followed suit, losing 73.04 points, or 1%, to close at 7,404.68.

Shares in Pallaum Minerals lost 1 to 21 on a volume of over 1 million. Investors took profits from news that Falconbridge has signed a deal to earn up to a 50% stake in the South Voisey Bay project in Labrador. The deal involves the SVB nickel company, Northern Abitibi Mining, Major General Resources and Pallaum Minerals. Falconbridge must spend $23 million on exploration before the end of 2006 to earn its interest.

Poplar Resources lost ground for the second straight day, losing 5 to close at 30 on a volume of 276,400. The company’s 65%-owned subsidiary is working the Sundsvall diamond project and the Bottenbacken polymetallic project. Both properties are in Sweden.